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A ‘tax haven’ refers to a country or small jurisdiction that offers low or no taxes to attract businesses, investors, and wealthy individuals.
Monaco is the only existing European country that is tax-free. (Pexels/Representational Image)
Imagine getting your full salary on payday with no deductions, no tax filings, and no stress. Sounds like a dream, right? But what if we tell you that tax havens really do exist? People in these countries earn without paying any personal income tax.
A “tax haven” refers to a country or small jurisdiction that offers low or no taxes to attract businesses, investors, and wealthy individuals. The term is often used for small island nations that provide favourable tax policies, with much of their revenue coming from annual contributions made by global corporations operating there. Here’s a list of 11 countries where you don’t need to pay income tax.
The Bahamas
The Bahamas imposes no income tax on its residents, no matter where their income is earned. Instead, the government generates most of its revenue from tourism and offshore business activities. The Bahamas provides investors with a simple path to temporary residency and a fast track to permanent residency through property purchases of $750,000 (Rs 6.5 crore) or more. Although the cost of living is high, its beautiful beaches, warm climate, and luxurious lifestyle make it one of the most desirable tax-free destinations in the world.
Bahrain
Situated on the Persian Gulf, Bahrain is a tax-free country that earns revenue from the oil industry, financial services and 10 per cent VAT introduced in 2019. While the country has no personal income tax, residents are required to contribute to Social Insurance and Unemployment funds. However, gaining citizenship in the country is quite challenging. To qualify for permanent residency, one must either be retired, invest at least $135,000 (Rs 1.1 crore) in property, or invest $270,000 (Rs 2.35 crore) in a Bahraini business.
Bermuda
This British Overseas Territory does not impose any income tax, but employers pay a payroll tax, which can sometimes be deducted from salaries. Residency in the country is generally restricted to short-term permits or work visas, making it a suitable destination for professionals on international postings. Its stunning pink-sand beaches and strong reputation for safety also make it a popular choice among wealthy expatriates.
Brunei
Brunei, which is an oil-rich country, imposes no income tax and offers free healthcare and education to its citizens. Relocating there is extremely challenging, as both citizenship and permanent residency require royal approval and years of continuous stay, making them nearly unattainable. The government maintains strict control over immigration, keeping the nation tax-free but highly exclusive.
Cayman Islands (territory)
Similar to the Bahamas, the Cayman Islands generate sufficient revenue from tourism, allowing the government to maintain a tax-free environment for residents. To obtain permanent residency, individuals must earn at least $145,000 (Rs 1.2 crore) per year, invest a minimum of $600,000 (Rs 5.2 crore) in real estate, and wait eight years before qualifying.
Kuwait
For the large oil industry revenue, Kuwait has no personal income tax. The country imposes a 15 per cent corporate tax, social contributions, and a 5per cent VAT. Permanent residency is hard to obtain, usually requiring Kuwaiti relatives or a valid employment contract.
Maldives
This island nation near India relies heavily on tourism, so there’s no income tax for residents. However, gaining citizenship or permanent residency is nearly impossible, as there’s no program for foreigners and any program would require being a Sunni Muslim.
Monaco
The only remaining tax-free country in Europe, Monaco, is relatively easier for foreigners to gain residency, though it comes with a high price. A residence permit can be obtained in as little as three months, but applicants must deposit 500,000-1,000,000 euros in a local bank and buy or rent property in the city-state.
Saudi Arabia
Income earned in this oil-rich nation is not taxed. However, self-employed expatriates may be liable for up to 20 per cent tax on non-employment income, such as earnings from overseas investments.
Oman
Oman relies on oil and gas revenues, so residents pay no personal income tax. The country does levy VAT on some goods, corporate tax up to 15 per cent, and a 10 per cent withholding tax on foreigners. Expats usually need a job or local relatives to gain residency, and strict cultural norms like needing a permit to buy alcohol can be an adjustment.
Qatar
Qatar also imposes no personal income tax, thanks to its oil wealth. A 5 per cent VAT applies, and employers pay 10 per cent social security. The country offers a modern economy and relative safety, but residency is challenging and typically requires fluency in Arabic.
Turks and Caicos (territory)
This British Overseas Territory does require contributions to a national insurance system, but it does not impose personal income taxes on residents.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Delhi, India, India
October 24, 2025, 13:05 IST
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